Las Vegas Sands Said to Hire Global Coordinators for Loan
Las Vegas Sands Corp. (LVS) hired DBS Bank Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. (UOB) as global coordinators for a S$4.6 billion ($3.7 billion) loan, according to a person familiar with the matter.
Proceeds will be used by Marina Bay Sands Pte, the Singapore unit of Las Vegas Sands, to refinance debt, the person said, asking not to be identified because the details are private. The loan may be split into a S$4.1 billion term facility and a S$500 million revolving credit facility, the person said.
Las Vegas Sands’ vice president of corporate finance, Stephen Cootey, declined to comment on the financing when contacted by phone at his office in Las Vegas today.
The U.S. casino company controlled by billionaire Sheldon Adelson declared its first dividend earlier this year as it reported a 17 percent rise in fourth-quarter profit on growth in Singapore and China. Net income rose to $320.1 million from $273 million a year earlier, the Las Vegas-based company said in a Feb. 1 statement.
Singapore has authorized just two casinos, which Las Vegas Sands and Malaysia’s Genting Bhd. (GENT) opened in the first half of 2010. International visitor arrivals to the Southeast Asian city-state rose 13 percent to 13.2 million in 2011, the Singapore Tourism Board said in a Feb. 7 statement. Preliminary tourism receipts are estimated to have reached S$22.2 billion, the board said.
Las Vegas Sands is offering to pay a margin of 185 basis points more than the Singapore dollar swap offered rate on both facilities, the person said. The term facility will mature in six years while the revolving credit facility would have a tenor of 5 1/2 years, the person said.
A meeting has been set for April 4 with the borrower to discuss key lender commitments before the facility is marketed more widely to other banks, the person said.
Marina Bay Sands has S$5.4 billion in loans that mature in 2015, according to data compiled by Bloomberg.